Advantages and Disadvantages of A Will

A Will is a legal document containing your written instructions for how your property/assets will be distributed and how your dependents will be cared for in your absence. Your assets may consist of bank accounts, brokerage funds, vehicles, real estate, items of sentimental value, and other personal property.

A Will (or Last Will and Testament), just like any other estate planning tool, has advantages and disadvantages. Below, I have listed of few advantages and disadvantages; however, you should always consult your estate planning attorney to determine the best estate planning options for you.

Potential Advantages

1. A Will is good for individuals and families who do not have assets that would have to go through the court process called probate, or who are not concerned with avoiding probate.
2. A Will is traditionally less expensive to prepare than a trust-based estate plan.
3. A Will allows you to appoint a guardian to care for your minor children until they become adults.

Possible Disadvantages

1. A Will may not provide sufficient tax planning leaving your estate and/or beneficiaries to pay hefty federal, and state estate taxes.
2. A Will may not sufficiently protect your assets from creditors.
3. A Will must go through probate, which can take anywhere from a few months to a couple of years; very expensive; and complex. Probate also lacks privacy, meaning your estate plan will become part of the public court records that anyone can read, including your Last Will and Testament, a list of your beneficiaries and assets, and a break down of who's getting what and how and when they get it.
4. A Will alone does not make any provisions if you should become incapacitated.
5. A Will generally addresses the distribution of the bulk of your assets, however, there are some assets that are not covered by the instructions in your Will such as community property, life insurance payouts, retirement assets, investment accounts that are designated as "transfer on death," and assets owned jointly by two or more people where the survivor automatically gains ownership (joint tenants with right of survivorship).

Don't let the long list of possible disadvantages of Wills discourage you from estate planning. All of the possible disadvantages listed above can be addressed with other estate planning tools.

If you want to protect your assets and family with an estate plan but don't know where to begin, then request a FREE copy of our Estate Planning E-Book and Newsletter and discover:

• How to create an estate plan to protect you and your family
• If you should be concerned about estate taxes
• The 4 basic requirements for a valid will
• 7 important questions you should consider when making a will
• How to protect yourself and family if you become incapacitated or disabled
• The advantages and disadvantages of a trust
• Other estate planning tools everyone should know about

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